The 10 Best Cheap Car Insurance Companies for Young Drivers in 2020

Buying a first car is a significant milestone for young people as they get to actualize their dream driving fantasies. Unfortunately, getting car insurance for teens is usually expensive due to their high-risk status. While some are lucky to find car insurance for high risk drivers, most young drivers do not have any other option other than to settle for higher auto insurance premiums. If it is not higher premiums, some young drivers have to settle for insurance plans that cover things that they do not need. Although it will not be straightforward, you can find cheap insurance for young drivers with thorough research. You will also need to shop smart and look for an insurance provider who will let you work your way into a good driving record.

The easiest way to get cheap car insurance for new drivers under 21 is to go for car insurance for students. With car insurance for college students, you can be able to save on premiums by taking advantage of college-friendly insurance discounts and packages. College-friendly insurance plans come with a host of benefits that include volunteer discounts, low-mileage discounts, distant student discounts, good student discount and student organization discounts.

You are also more likely to get an affordable insurance plan by comparing car insurance quotes online. Comparing quotes online is a convenient way to find the cheapest insurance provider.

The process of finding affordable first time car insurance for young drivers is even more complicated for low-income individuals. With lease options making it affordable for people with low income to own a car, low income car insuranceproviders are becoming more popular. Insurance providers are offering various discounts to people with low income in an attempt to lower their insurance premiums. The common insurance discounts that you can get include good driver discounts, defensive driving discounts, safe driver discounts, multi-car discounts, senior driver discount and military employee discounts.

Why is Young Drivers Car Insurance Expensive?

The reason why you will have to pay higher premiums than your parents is that you have a higher risk. You are more likely to get into an accident than drivers above the age of 25, as you have not been driving for long, which makes mistakes more common. Since insurance companies calculate premiums based on the risk, young drivers are disadvantaged by their little data resulting in higher premiums.

However, with more young drivers getting on the road, major insurance companies are beginning to reconsider their stand on young drivers. They are introducing friendly car insurance for 17 year old drivers enabling them to enjoy their new driving experience without paying hefty insurance premiums. If you are struggling to pay higher premiums, there are several things you can do to increase your chances of getting cheap insurance for young drivers. You can lower your premium by looking for a car that is cheaper to insure. Powerful and expensive cars are more costly to insure than low-end vehicles.

You can also lower your insurance premiums by paying a higher excess, avoiding things that you do not need and adding an experienced second driver to the policy. You can also lower your premiums by making your car more secure by adding security features like an alarm. You can also reduce your insurance costs by looking for insurance plans that are friendly to new and young drivers. In this article, you will find ten of the best insurance companies for young drivers.

The 10 Best Cheap Car Insurance Companies in 2020 For Young Drivers

1. Erie Insurance

For young drivers living in Illinois, Virginia, North Carolina, Ohio, Indiana, West Virginia, Tennessee, Wisconsin, Pennsylvania, New York, and New York, Erie is the cheapest insurance provider for college and teen drivers. Erie offers great discounts that reduce premiums by up to 20 percent for young drivers less than 21 years who live at home for the years they are under the policy. The company also offers discounts for participating in various competitive programs that offer prizes to the best students who are engaged with safe driving.

The company is also highly competitive and has a friendly claims service that is backed by responsive customer care staff. Erie has an A+ rating by A.M. Best, which looks at a company’s financial stability as well as the likelihood that your claim will be settled.

2. American Family Insurance

Lack of driving data among young drivers is a major problem for most insurance companies, but the American Family Insurance has gone a step further to help solve the problem of inadequate data. The company, through a free Teen Safe Driver Program, collects driving data that allows the company to monitor the driving habits of young drivers. Once they complete 3,000 driving hours or drive using the app for one year, the company gives them a discount of up to 10-percent on their current premiums. The app tracks driving habits and provides feedback. If the car is shared, you can remove trips of other drivers from the log quickly.

To enjoy even greater discounts with American Family Insurance, you should opt for an older vehicle. If your car does not have the latest security features, you should consider getting them installed for increased benefits. At least before contacting the company, you should make sure that your car airbags are working. It is also helpful when your car has a recent safety inspection from a reputable mechanic.

3. State Farm Insurance

Smaller insurance companies usually have the best car insurance for teens, but they are not available in all places. State Farm Insurance is a competitive option for young drivers living outside the major metro areas as well as states that are not by the small insurance providers. The company has amazing customer service, but its biggest selling point for young drivers is the 25-percent discount for good grades. The discount is applicable to young drivers of up to 25 years.

As one of the largest insurance companies in the country, you can be sure that your claims will be swiftly sorted out. It also offers different plans and discounts that help drivers reduce their premiums based on their driving habits. The company has a Steer Clear and Drive Safe & Save program that helps drivers learn to drive safely and earn discounts.

4. Nationwide Insurance

Cost is not the only thing you should consider when choosing the best first-time car insurance. You will need to consider other benefits and Nationwide Insurance has some of the best policy perks for young drivers. With a high likeliness of getting into an accident, you should make sure that your premiums will not skyrocket after your first at-fault accident. Nationwide Insurance not only offers good discounts for students, but it also offers teen drivers with accident forgiveness.

The company also offers drivers with 24/7 roadside assistance to help you out in case of an emergency. It furthers offers a SmartRide program that allows young drivers to qualify for more significant discounts after one year. The company has a family plan offer that allows teen drivers to be eligible for discounts if parents are accident-free.

5. Geico Insurance

If you are always using your seatbelts, you can qualify for discounts on your car insurance with Geico Insurance. Other safety features such as anti-lock brakes, airbags and anti-theft protection can also count in helping you reduce your insurance premiums. Geico Insurance further helps teen drivers easily transition to their plan from a family program. Teen drivers who stay on their parent’s insurance policies get lower rates when they switch to their own Geico plan. With Geico, you will get your car insurance quotes online as it is sold directly online and thus, you will not have to deal with an agent’s office.

6. Progressive Insurance

A multi-car discount is a perfect way to get lower premiums for teen drivers. The company has one of the most helpful websites for teen drivers who may not be familiar with the car insurance industry. A comparison tool will help you know the plan that is best for your needs without the need to call a sales representative. However, you should remember to ask for a discount once you eventually choose the best plan.

7. Allstate

If you are a student under the age of 25 and not married, you can get amazing discounts on your insurance premiums if you are schooling full-time and getting good grades. You will also need to complete a teenSmart driver program or attend a school that is at least 100 miles away from your home in your car. When talking to local agents, you should ask them about discounts that can apply to you as the company offers a wide range of discounts that include good grade discounts, safe driver discounts and discounts for using a safe driving app. If you are not using your car regularly, you should ask your agent for a lower premium.

8. USAA

Joining the military is a source of pride for many young Americans. If you join the military immediately after college or high school, you do not have to pay a higher premium for your car insurance, thanks to USAA. The company has competitive policies for military members and veterans, as well as their families that you should take advantage of to lower the cost of driving your first car. The company has the best price and customer service ratings in the industry.

9. Metromile

If you are always using public transportation, walking, or biking to school, you are the perfect candidate for Metromile car insurance. Metromile is a pay-per-mile insurance company that calculates premium based on the miles you are likely to drive. It is a good option if you are likely to drive less than 10,000 miles per year. The company claims that occasional drivers can save up to $500 on their premiums with pay-per-mile insurance.

10. Esurance

With Esurance Insurance Company, you will be able to manage your policy and claims online. The highlight of Esurance is its fast five plan that lets you save for getting an online quote, multi-vehicle policy discount, multi-policy discount and switch and save. You can also get a discount if you are Pac-12 school alumni or if you purchase emergency road assistance from a third party. You may also qualify for higher discounts if you have good grades, a good driving record, and if your car has anti-theft devices.

Frequently Asked Questions (FAQ)

How to Save Money on Car Insurance for Young Drivers?

To save money on your car insurance, you should install anti-theft devices that will make your car more secure. You should also avoid parking your car in the streets. You will likely get lower rates if you have a garage. You should also avoid expensive cars or modifications that will make your car more powerful. A less expensive vehicle is also less costly to insure. Some of the factors insurance providers look at in a car include how quickly it accelerates and the available features. You can further save on your insurance by increasing your excess, paying for what you only need, adding an experienced second driver look for insurance companies with features that are friendly to new, young drivers.

Which Cars are Cheaper to Insure for Young Drivers

Less expensive cars will be the cheapest to insure. Some of the models that will not cost you much to insure are

Honda Civic

Mazda 3

Toyota Prius

Honda Accord

Mazda

Ford Fusion

Mitsubishi Outlander

Subaru Outback

What car has the Lowest Insurance Group for Young Drivers?

Cars in group one are the cheapest to insure. Some of the cars in group one include Nissan Micra, Kia Rio, Volkswagen Polo and Ford Ka+.

Does Car Color Affect Insurance?

No. The color of your car will not affect insurance.

Will a Young Driver Driving an Old Car Lower Insurance Cost?

Yes. An old car has a lower value, which will help reduce the overall cost of the insurance.

Closing Thoughts

It is not easy to find cheap insurance for young drivers, but you can get discounts that will lower the cost of insurance if you are willing to go the extra mile. Installing devices that will improve safety and including an experienced driver on your plan are some of the steps that you can make to increase your chances of getting lower premiums. You will also have a greater chance of getting lower premiums when you choose an insurance provider with friendly terms for new drivers. The companies listed above are reliable and friendly to new, young drivers, but you should always compare quotes before selecting the best provider.